Phillip L. Kiddoo AirPollution Control Officer

# ~ GREATBASINUNIFIED AIRPOLLUTION CONT 157ShortStreet, Bishop, California93514-3537 760-872-8211 Fax: 760-872-6109
April 15, 2015

Gerardo Rios Chief, Air Permits Office (Air-3) EPA Region 9 75 Hawthorne Street San Francisco, CA 94105 

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RE: Additional Clarifications for Rule 221 Related to Prevention ofSignificant Deterioration
Dear Mr. Rios:
On February 6, 2013, the California Air Resources Board (CARB) submitted for Environmental Protection Agency's (EPA) approval Great Basin Unified Air Pollution Control District (District) Rule 221

- Prevention ofSignificant Deterioration (PSD) Permit Requirements for New Major Facilities or Major Modification in Attainment or Unclassifiable Areas. This letter is intended to clarify the District's position concerningthe application ofthe PM2.s Significant Monitoring Concentration (SMC) in its PSD program in light oftheJanuary 22, 2013 decision bythe U.S. Court ofAppeals for the District of Columbia (Court) in Sierra Club v. EPA, 705 F.3d 458.
In Sierra Club v. EPA, the Court granted a request from EPA to vacate and remand to EPA the portions oftwo PSD rules (40 CFR 51.166(k)(2) and 40 CFR 52.21(k)(2)) addressing the SILs for PM2.s so that EPA could voluntarily correct an errordn these provisions. The Court also vacated the parts ofthesetwo PSD rules (40 CFR 51.166(i)(5)(i)(c) and 40 CFR 52.21(i)(5)(i)(c)) establishing a PM2.s SMC, findingthat EPA was precluded from usingthe PM2.s SMC to exempt permit applicants from the statutory requirement to compile and submit preconstruction monitoring data as part ofa complete PSD application. On December 9, 2013, revisions to 40 CFR 51.166 and 52.21 were published in the Federal Register to remove the affected provisions from the PSD regulations, effective as ofthat date. 78 Fed. Reg. 73698.
To implementthe PSD permitting program underthe Clean AirAct, the District adopted Rule 221, which incorporated 40 CFR 52.21 by reference intothe rule (with certain exceptions and revisions), as in effect on July 1, 2012. As advised by EPA Region 9, Rule 221 excludes the vacated provisions forthe PM2.s SILs thatwere formerly at 40 CFR 52.21{k)(2). However, Rule 221 includes the vacated provisions described above relatingto the PM2.s SMC as part ofthe SIP revision submitted to EPA for approval.Followingthe Court's decision in Sierra Club v. EPA, EPA requested clarification from the District concerning its interpretation of Rule 221 tothe extentthat it incorporates by reference 40 CFR 52.21(i)(S)(i)(c).
I am writingto clarify thatthe District interprets and intendsto implementthe PSD program in a mannerthat is consistent with the Court's decision in Sierra Club v. EPA and EPA's subsequent revisions to its PSD regulations consistent with that decision.
PM2.s 

### SMC
District Rule 221 incorporates by reference the federal regulation at section 52.21(i)(S)(i), which provides thatthe APCO "may exempt a proposed major stationary source or major modification from the requirements of paragraph (m) ofthis section, with respect to monitoring for a particular pollutant, if"the emissions increase or net emissions increase is belowthe applicable SMC. Thus, this provision, specifically at section 52.21(i)(S)(i)(c), as incorporated by reference in Rule 221, provides the District with the discretion to determine whether it is appropriate to applythe SMC for PM2.s to exempt a permit applicant from the requirement to compile and submit preconstruction ambient monitoring data for PM2.s as part ofacomplete PSD application. Consistent with the Court's decision in Sierra Club v. EPA vacatingthe PM2.s SMC, the District affirmsthat itwill not exercise its discretionary authorityto use the PM2.s SMC in orderto exempt PSD permit applicants from the requirement in Clean AirAct section 165(e)(2) that ambient monitoringdata for PM2.s be included in applications subject tothe PSD program for PM2.s. Accordingly, the District will require all applicants requesting a PSD permitfrom the District, includingthose that have already applied for but which have notyet received the permit, to submit ambient PM2.s monitoring data in accordance with Clean Air Act requirements when proposed increases ofdirect PM2.s emissions or any emissions ofa PM2.s precursor equal or exceed a significant amount. In summary, the District intendsto implementthe PSD program consistent with the Court's decision.
Please call me or Duane Ono at (760) 872-8211 ifyou have any questions regarding the District's interpretation or plans for implementation ofthe federal PSD regulations. Sincerely,

Phillip L. Kiddoo Air Pollution Control Officer

cc: Carol Sutkus, CARB Monica Lewis, CARB